Chief Appraiser

© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

© Copyright Notice: © The Appraisal Foundation. Excerpts shown for research and reference only (fair use, 17 U.S.C. § 107) — every certified appraiser is required to have their own current copy under USPAP's own Record Keeping/Competency provisions; this tool helps you find the exact passage, it doesn't replace owning it. Full current edition available for purchase at appraisalfoundation.org. Reproduction restricted per The Appraisal Foundation's copyright policy.

8 results for C4 condition

Was this helpful? 👍 Yes 👎 Not quite

Filter: All None

#1 UAD 3.6 / URAR (FNMA) Page 348

0.183 ▼

Appendix 2: Condition and Quality Rating Definitions Appendix F-1: URAR Reference Guide Page 348 of 375 Version 1.3 Appendix 2: Condition and Quality Rating Definitions Condition…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 348 · View at official source (fanniemae.com/uad) →

Appendix 2: Condition and Quality Rating Definitions Appendix F-1: URAR Reference Guide Page 348 of 375 Version 1.3 Appendix 2: Condition and Quality Rating Definitions Condition Rating Definitions Condition Ratings describe the physical condition of a property as of the effective date of the appraisal on an absolute basis, not on a relative basis or how a property relates to other properties. Condition Rating definitions are used for Overall Condition, Exterior Condition, and Interior Condition. Condition Rating Definitions Rating Condition Rating Definition Criteria C1 The dwelling is 100% newly constructed, completed within the past 12 months, has never been occupied, and exhibits no signs of wear or use. A dwelling in C1 condition: • Has a foundation that must be 100% original to the new construction. • May include non-structural components composed of “like new” recycled materials (e.g., reconditioned or refinished barn wood). • Is a 100% newly constructed dwelling that does not exhibit physical depreciation. C2 The dwelling exhibits like-new condition. It has been recently constructed or entirely remodeled within 36 months prior to the appraisal date, while retaining portions of the pre-existing structure. The dwelling may have been occupied but features no deferred maintenance and requires no repair. A dwelling in C2 condition: • Has been recently constructed (within the past 36 months), and otherwise exhibits virtually no wear and tear, but is no longer new due to occupancy or use (e.g., model home), or • Has been fully remodeled "to the studs" including new major components; a new dwelling built utilizing the footprint or façade of a pre-existing dwelling; or a newly converted condo/co-op in a pre-existing building. C3 The dwelling has been well-maintained and exhibits only minimal wear and tear. The dwelling may exhibit only minor age-related physical depreciation; or, most components, but not every major building component, has been updated or renovated. A dwelling in C3 condition will likely have: • Components or rooms that are older but have been very well maintained or experienced minimal use, and show little or no physical depreciation, or • Major components or rooms that have been recently updated, but which do not constitute a full-home renovation/remodel. Examples of major components include but are not limited to a combination of (one or more): • Newer roof • Some newer mechanicals • New / newer floor coverings • Remodeled kitchen or bathroom(s) C4 The dwelling has been adequately maintained and

#2 UAD 3.6 / URAR (FNMA) Page 250

0.134 ▼

Sales Comparison Approach Appendix F-1: URAR Reference Guide Page 250 of 375 Version 1.3 Quality and Condition The Quality and Condition subsection always displays on the sales…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 250 · View at official source (fanniemae.com/uad) →

Sales Comparison Approach Appendix F-1: URAR Reference Guide Page 250 of 375 Version 1.3 Quality and Condition The Quality and Condition subsection always displays on the sales comparison grid, and includes: • Exterior Quality and Condition – repeats for each structure, if the homeowner is responsible for exterior maintenance • Interior Quality and Condition – repeats for each unit that is not an ADU • ADU Interior Quality and Condition – repeats for each ADU • Overall Quality and Condition – always displays Exterior Quality and Condition Exterior Quality and Condition displays in the sales comparison grid if Homeowner Responsible for all Exterior Maintenance of Dwellings (3.016) is Yes for the subject, and the “When Row Displays” column in this chapter reflects this. Notes: • When exterior features are included in the Exterior Quality and Condition subsection, it provides context for: o Exterior Quality Rating for the dwelling, and for the Overall Quality Rating. o Exterior Condition Rating for the dwelling, and for the Overall Condition Rating. • Any adjustments are made in the Overall Quality Rating (22.11.04) or Overall Condition Rating row (22.11.06), and not here. • For properties with multiple dwellings, Exterior Quality and Condition repeats for each dwelling, based on the field Dwellings Containing Units.

#3 Fannie Mae Selling Guide Page 592

0.118 ▼

Level of Updating Description Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion.…

Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 592 · View at official source (selling-guide.fanniemae.com) →

Level of Updating Description Remodeled Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion. A remodeled area reflects fundamental changes that include multiple alterations. These alterations may include some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of square footage). This would include a complete gutting and rebuild. Appraisals Completed “As Is” Fannie Mae permits appraisals to be based on the “as is” condition of the property provided existing conditions are minor and do not affect the safety, soundness, or structural integrity of the property, and the appraiser’s opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance are typically due to normal wear and tear from the aging process and the occupancy of the property. While such conditions generally do not rise to the level of a required repair, they must be reported. Examples of minor conditions and deferred maintenance include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, missing handrails, or cracked window glass. Properties with condition ratings C1, C2, C3, C4, and C5 as previously defined are eligible in “as is” condition. Properties with the initial condition rating C6 indicate one or more deficiencies that impact the safety, soundness, or structural integrity of the property. Therefore, the appraisal must be completed "subject to" completion of the deficient item(s) with a minimum resulting condition rating of C5. See Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property in this topic for additional details when completing appraisals on properties with safety, soundness, or structural integrity deficiencies. Quality of Construction Rating For appraisals required to be completed using the UAD, the appraiser must assign one of the following standardized quality ratings in the table below when identifying the quality of construction for the subject property and comparable sales.

#4 Fannie Mae Selling Guide Page 588

0.115 ▼

Location. When an appraiser selects a rating and/or description of the subject property for a sales transaction, the selected rating and/or description must remain the same when…

Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 588 · View at official source (selling-guide.fanniemae.com) →

Location. When an appraiser selects a rating and/or description of the subject property for a sales transaction, the selected rating and/or description must remain the same when reflecting that specific transaction. For example, if a C4 rating is selected for the sale of the subject property, then that property remains a C4 when using that specific sale as a comparable in future reports. The same expectation holds true for ratings and descriptions of comparable sales. When a comparable is used in a subsequent appraisal, the ratings and descriptions of that property should not change from one appraisal to the next when it reflects the same sale transaction. Note: Properties can have the same rating or description and still require an adjustment. It should be noted this not only applies to condition and quality ratings but can apply to other ratings or descriptions as well. For example, all water views may not be equal. In this instance, an adjustment should be made and explained in the Additional Comments section of the form or in an addendum. Property Condition Lenders must take the necessary steps to confirm that a property meets Fannie Mae’s condition requirements as outlined in this topic. The table below provides the requirements for property condition. ✓ Requirements The appraisal report must express an opinion about the condition of the improvements based on factual data of the improvements analysis. Appraisals based on interior and exterior inspections must include complete visual inspections of the accessible areas of the property. Note: Appraisers are not responsible for hidden or unapparent conditions. Appraisal reports must reflect adverse conditions that were apparent during the inspection or discovered while performing research, such as, but not limited to, needed repairs, deterioration, or the presence of hazardous wastes, toxic substances, or adverse environmental conditions. Detrimental conditions of the improvements must be reported in the appraisal even if the conditions are typical for competing properties. The appraiser must consider and describe the overall condition and quality and condition of the property improvements. (See Identifying Property Condition; Definitions of Not Updated, Updated, and Remodeled; and Identifying Quality of Construction in this topic for details.)

#5 Freddie Mac Seller/Servicer Guide Page 52

0.079 ▼

temporary shortages of building materials). The Mortgage must be: Secured by a newly built or constructed site-built home, Secured by an existing site-built home, or Secured by a…

Freddie Mac Seller/Servicer Guide · Freddie_Mac_Guide_2026-06-25.txt · Page 52 · View at official source (guide.freddiemac.com) →

temporary shortages of building materials). The Mortgage must be: Secured by a newly built or constructed site-built home, Secured by an existing site-built home, or Secured by a Manufactured Home that meets the general requirements in Section 5703.2 and the property eligibility requirements for Manufactured Homes in Section 5703.3(a) (b) Requirements for Mortgages with Settlement Dates prior to the completion of improvements Mortgages with Settlement Dates prior to the completion of improvements are eligible for sale to Freddie Mac when the requirements in the table below are met: Requirements for Mortgages with Settlement Dates prior to the completion of improvements Topic Requirement Appraisal report or PDR When an appraisal report has been obtained, it must be completed subject to: Completion, or Repairs or alterations When a PDR has been obtained, it must identify: Incomplete construction or renovation(s), or Deficiencies consistent with a C5 condition rating Cost to complete incomplete improvements The appraiser or a disinterested (but relevant) party must provide a cost to complete the incomplete improvement(s). Example: A contractor who provides an estimate to install or repair interior walls is a disinterested (but relevant) party. A relevant party may also include a representative of a home improvement store or an independent contractor who performs the services needed to complete the improvements or repairs. Maximum permitted incomplete improvement cost When an appraisal report has been obtained, the cost to complete the incomplete item(s) or repair(s) must not exceed 10% of the "as completed" value of the Mortgaged Premises. When a PDR has been obtained, the cost to complete the incomplete item(s) or repair(s) must not exceed 10% of the purchase price or estimated value of the Mortgaged Premises, as applicable. Property condition rating The incomplete improvements must not be consistent with a C6 condition rating (e.g., active roof leak(s), damaged or failing foundation). Completion escrow account The Seller must establish a completion escrow account for the incomplete item(s) or repair(s). The Seller and the Borrower must execute a written escrow agreement detailing how the funds will be managed and disbursed. A copy of the escrow agreement must be retained in the Mortgage file. Completion deadline The incomplete item(s) or repair(s) must be completed no more than 365 days after the Note Date. If the eligible improvements are not completed by the required completion date, the Seller/Servicer must notify Freddie Mac Quality Control pursuant to the reporting requirements in Section 3402.3(b).

#6 2024 USPAP Page 103

0.051 ▼

that the property Is free of the contamination. © While this is acceptable practice under certain conditions and for certain intended uses, there are assignments that 10 require…

2024 USPAP · 2024_USPAP_text.txt · Page 103 · View at official source (The Appraisal Foundation — USPAP) →

that the property Is free of the contamination. © While this is acceptable practice under certain conditions and for certain intended uses, there are assignments that 10 require an appraisal of the "as-is" condition of the property, with full consideration of the effects of environmental 1 contamination. in these assignments, the appraiser is asked to analyze the effects of known environmental 12 contamination on the value of the subject property. 12 How does an appraiser comply with USPAP when appraising properties that may be impacted by environmental contamination? 1s ADVICE FROM THE ASB ON THE ISSUE: 6 Relevant USPAP & Advisory References 17 + DEFINITIONS, specifically the definitions of ‘8 + Extraordinary Assumption: an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, iffound to be false, could alter the appraiser's opinions or conclusions. 20 Comment: Uncertain information might include physical, legal, or economic characteristics of the subject a1 property; or conditions external to the property, such as market conditions or trends; or the integrity of data 2e used in an analysis. 23+ Hypothetical Condition: a condition, directly related to a specific assignment, which is contrary to what is known 2 by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 2s Comment: Hypothetical conaltions are contrary to known facts about physical, legal, or economic 26 characteristics of the subject property; or about conditions external to the property, such as market 27 conditions or trends; or about the integrity of data used in an analysis. 28 + ETHICS RULE, particularly: 29 Conduct: An appraiser must perform assignments with impartiality, objectivity, and independence, and without 20 accommodation of personal interests ... An appraiser must not communicate assignment results with the 31 intent to mislead or to defraud. 22 + COMPETENCY RULE: 33 An appraiser must: (1) be competent to perform the assignment; (2) acquire the necessary competency to 2s perform the assignment; or (3) decline or withdraw from the assignment. In all cases, the appraiser must 28 perform competently when completing the assignment. 8 c= USPAP Guidance: Advisory Opinions oS © The Appraisal Foundation --- Page 107 --- Ens. ADVISORY OPINION 9 + Standards Rule 11(a) 36 In developing a real property appraisal, an appraiser must: (a) be aware of, understand, and correctly employ 37 those recognized methods and techniques that are necessary to

#7 VA Minimum Property Requirements (Ch. 12) Page 3

0.049 ▼

Requirements 12-3 1. Minimum Property Requirement Procedures Change Date October 18, 2019 • This chapter has been revised in its entirety. a. MPRs VA has established Minimum…

VA Minimum Property Requirements (Ch. 12) · Ch12_Minimum_Property_Requirement_NEW 2022 02 17.pdf · Page 3 · View at official source (VA.gov — Construction and Valuation) →

Requirements 12-3 1. Minimum Property Requirement Procedures Change Date October 18, 2019 • This chapter has been revised in its entirety. a. MPRs VA has established Minimum Property Requirements (MPRs) to protect the interests of Veterans, lenders, servicers, and VA. Properties must meet these requirements prior to guaranty of the loan by VA. b. Appraisal is Not a Home Inspection While VA-assigned fee appraisers must note any readily apparent repairs that are needed, it is important to distinguish the differences between a real estate appraisal and a home inspection report. The fee appraiser will not perform operational checks of mechanical systems or appliances. The fee appraiser estimates the value of the property to ensure that it is sufficient for the amount of the proposed loan. c. Safe, Sound, Sanitary MPRs help ensure that the property is safe, structurally sound, and sanitary. The scope of MPRs also includes issues related to the property’s location and legal considerations. d. Appraisal Subject to Repairs to meet MPRs The appraiser will prepare origination appraisals “subject to” the completion of any MPR repairs that appear to be needed and include the contributory value of the completed repairs in the estimated market value. Liquidation appraisals are prepared “as-is” (see Chapter 11, Topic 20 of this Handbook). e. Recommend Repairs, Not Inspections Appraisers must not prepare appraisals subject to inspections. The appraiser must recommend repairs, not inspections, for any conditions that do not appear to meet MPRs. f. Cosmetic Items The appraiser should not recommend repairs of cosmetic items, items involving minor deferred maintenance or normal wear and tear, or items that are inconsequential in relation to the overall condition of the property. While minor repairs should not be recommended, the appraiser should consider these items in the overall condition rating when estimating the market value of the property. Continued on next page

#8 VA Lenders Handbook (Pamphlet 26-7) Page 414

0.049 ▼

Minimum Property Requirements 12-3 1. Minimum Property Requirement Procedures Change Date October 18, 2019 • This chapter has been revised in its entirety. a. MPRs VA has…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 414 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Minimum Property Requirements 12-3 1. Minimum Property Requirement Procedures Change Date October 18, 2019 • This chapter has been revised in its entirety. a. MPRs VA has established Minimum Property Requirements (MPRs) to protect the interests of Veterans, lenders, servicers, and VA. Properties must meet these requirements prior to guaranty of the loan by VA. b. Appraisal is Not a Home Inspection While VA-assigned fee appraisers must note any readily apparent repairs that are needed, it is important to distinguish the differences between a real estate appraisal and a home inspection report. The fee appraiser will not perform operational checks of mechanical systems or appliances. The fee appraiser estimates the value of the property to ensure that it is sufficient for the amount of the proposed loan. c. Safe, Sound, Sanitary MPRs help ensure that the property is safe, structurally sound, and sanitary. The scope of MPRs also includes issues related to the property’s location and legal considerations. d. Appraisal Subject to Repairs to meet MPRs The appraiser will prepare origination appraisals “subject to” the completion of any MPR repairs that appear to be needed and include the contributory value of the completed repairs in the estimated market value. Liquidation appraisals are prepared “as-is” (see Chapter 11, Topic 20 of this Handbook). e. Recommend Repairs, Not Inspections Appraisers must not prepare appraisals subject to inspections. The appraiser must recommend repairs, not inspections, for any conditions that do not appear to meet MPRs. f. Cosmetic Items The appraiser should not recommend repairs of cosmetic items, items involving minor deferred maintenance or normal wear and tear, or items that are inconsequential in relation to the overall condition of the property. While minor repairs should not be recommended, the appraiser should consider these items in the overall condition rating when estimating the market value of the property. Continued on next page

Chief Appraiser Says Reading the actual guideline text below — never a general AI guess

# C4 Condition — Plain Language Explanation Here's what a C4 condition rating means: the home has been adequately maintained but shows obvious signs of wear and tear or deferred maintenance — meaning some things need attention and repairs. We're talking about properties that are acceptable and can be financed, but they're noticeably older or lived-in, with visible aging and some items that should be fixed. The key point is that C4 properties (along with C1, C2, C3, and C5) can be appraised "as is" according to Fannie Mae, meaning you can move forward with the purchase even though repairs are needed — unlike a C6 property, which has safety or structural problems that *must* be fixed before approval. Straight from UAD 3.6 / URAR (FNMA) and Fannie Mae Selling Guide — nothing added.

Chief Appraiser

Welcome to Chief Appraiser

Still Being Built — And That's Where You Come In

Why not just use AI?

Help Us Improve Chief Appraiser